factual

When is the Advertising Fund Fee due for a Body Brain Center franchise?

Body_Brain_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

OTHER FEES**

TYPE OF FEE AMOUNT DUE DATE REMARKS
Royalty Fee 1 10% of monthly Program Sales 2 Payable on or th day before 6 of month for prior month's operations None
Additional Training Fee 1 Up to $150 per hour plus food, lodging and travel expenses As invoiced See Note 3.
Initial Training $10,000 for first session, Before training See Note 4.
Fee 1 $400 for "retraining"
Advertising Fund Fee 1 0.5% of Program Sales 2 th Payable on the 6 day of month for prior month's operations See Note 5.
Cooperative Advertising Fee 1 Up to 0.5% of Program Sales, or as otherwise established by the cooperative 2 th Payable on the 6 day of month for prior month's operations Payable only if we establish an advertising cooperative that includes your territory. See Note 6.
National Up to $100 per day per As invoiced See Note 7.
Conference Fee 1 person
Inventory Items 1 Varies Upon order BBYHC is the supplier for most of your inventory items. You are not required to purchase any inventory items.
Software Fee 1 Currently $40 per month (not to exceed $100 per month) Payable on the 6th day of month See Note 8.
Audit Fee 1 Actual cost of audit plus $2,500; you must also pay travel and lodging expenses for the audit team Upon completion of audit See Note 9.
Renewal Fee 1 $1,000 90 days before expiration of term None.
Transfer Fee 1 Our costs incurred as part of transfer, up to maximum of $3,000 Before consummation of transfer See Note 10.
Fines 1 Up to $500 per incident (maximum of $2,500 for same violation) 10 days after billing See Note 11.
Late Fee 1 Lesser of 18% of amount past due or highest rate allowed by applicable law 10 days after billing

Source: Item 6 — OTHER FEES (FDD pages 11–14)

What This Means (2025 FDD)

According to Body Brain Center's 2025 Franchise Disclosure Document, the Advertising Fund Fee is due on the 6th day of each month. This payment covers the prior month's operations. The fee is calculated as 0.5% of the franchisee's Program Sales. Program Sales include all gross sums received from services sold at the Body Brain Center, such as memberships and referral fees, but excludes revenue from product sales, amounts refunded to customers, and sales and use taxes. Franchisees must also sign an ACH Authorization Form, allowing Body Brain Center to electronically debit their bank account for fee payments.

In addition to the standard Advertising Fund Fee, Body Brain Center may establish regional advertising cooperatives. If a franchisee's territory is included in such a cooperative, they may also be required to pay a Cooperative Advertising Fee. This fee can be up to 0.5% of Program Sales or another amount established by the cooperative. Like the Advertising Fund Fee, the Cooperative Advertising Fee is due on the 6th day of the month for the prior month's operations. The amount of the cooperative advertising fee may be adjusted or temporarily suspended by a majority vote of all franchisees within the advertising cooperative.

It is important to note that all fees payable to Body Brain Center, including the Advertising Fund Fee, are non-refundable, with the exception of payments for inventory items under specific conditions outlined in Item 5 of the FDD. Franchisees are required to deposit all revenues from their Body Brain Center into a designated bank account and ensure sufficient funds are available for withdrawal before each due date. Furthermore, franchisees are responsible for paying any taxes imposed on Body Brain Center or that Body Brain Center is required to collect and pay due to the products, intangible property, or services provided to the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.